Board Meeting Agenda

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1 Board Meeting Agenda Nashville MTA Board Meeting Greater Nashville Regional Council Offices Metro Center 220 Athens Way, Suite 200, Nashville, TN Please note AUGUST meeting address! 2:30 p.m., Thursday, August 23, 2018 Gail Carr Williams, Chair Janet Miller, Vice Chair 1. Call to Order 2. Approval of July 26, 2018 Minutes 3. Public Comments* 4. Operations & Finance Committee Walter Searcy, Chair a. Electric Buses & Related Sub-Equipment, Supply and Materials A b. Legal Services Contracts A New Initiatives & Community Engagement Committee Janet Miller, Chair a. Nashville MTA FY2019 Capital Budget A b. Supplemental ADA Capacity & Access on Demand Services A Chair s Report 7. Chief Executive Officer s Report 8. Other Business 9. Adjourn *Please keep all public comments to the Board within three minutes. Thank you

2 Minutes NASHVILLE METROPOLITAN TRANSIT AUTHORITY BOARD OF DIRECTORS MEETING July 26, 2018 I. CALL TO ORDER: The regular meeting of the Nashville Metropolitan Transit Authority (Nashville MTA) Board of Directors was held at the Lentz Public Health Center, Meeting Room A, 2900 Charlotte Avenue, Nashville, Tennessee on Thursday, July 26, Present were: Gail Carr Williams, Chair, Janet Miller, Vice Chair; Walter Searcy, Member; Secretary Candi Henry; and Chief Executive Officer Stephen G. Bland. A quorum was established, and Chair Williams called the meeting to order at 2:40 p.m. II. III. APPROVAL OF MINUTES: Proper motion was made and seconded to approve the minutes of the June 28, 2018 Board of Directors meeting. There were no additions or corrections, and the vote of approval was unanimous. PUBLIC COMMENTS: Chair Williams opened the floor for public comments. The public was reminded that comments were limited to three minutes. The following members of the public addressed the Board with these comments: Steve Reiter, Nashville, TN: Mr. Reiter stated his concerns about the budget and the possible impacts cuts would have on service. He noted that looking forward Nashville MTA should prepare for future cutbacks. Mr. Reiter reported that there had been some major incidents around metro transit in the cities of Oakland, CA, Washington DC, and Atlanta, GA. He stated that it was important that the Nashville MTA communications team be prepared for this type of incident when it happens again. He added it was important Nashville MTA reassure people Nashville has a strong transportation system and they are trying to make it better for everyone. James Thomas, a frequent rider, Nashville, TN reported the following: A driver on one of his trips did not wear his seat belt. Another trip left late from downtown and the driver hit the brakes hard. A bus had the right of way to cross at 4 th and Broadway, but another bus was had the intersection blocked. He doesn t think the plastic seats in the new buses are good for people s backs. Passengers will have to carry cushions to be comfortable. Darius T. Knight, Madison, TN: 1

3 Mr. Knight stated that a number of buses needed to be pulled from operation because of their age. Mr. Knight hoped the Board would take bus issue complaints seriously. He added that if funds were available, he hoped there would be a plan to purchase five new buses each year over a span of five years. There were no other public comments at this time. IV. OPERATIONS & FINANCE COMMITTEE REPORT: Committee Chair Walter Searcy reported on the following: a. CDM Smith Music City Central Task Order Amendment (A ): In March 2017, the Nashville Metropolitan Transit Authority (Nashville MTA) Board awarded CDM Smith with an Indefinite Delivery, Indefinite Quantity contract for program management services. Under this contract, CDM Smith has assisted Nashville MTA staff with the engineering oversight and review of facilities improvements approved in the 2018 Capital Budget. In August 2017, the Nashville MTA executed a task order in the amount of $289,000 for program management services related to the Music City Central (MCC) rehabilitation project. These services included scope validation, design and constructability reviews, bid package reviews and bid assistance, construction administration assistance, and project closeout review. The initial task order estimated a12- month project duration. As design and construction activities advance on the MCC rehabilitation project, additional funding is needed for professional service. Additional support accounts for a higher level of effort for construction oversight and project coordination as displayed through the initial months of construction. The additional level of effort is necessitated by project complexities and includes construction management, oversight, and coordination along with Special Inspections required by the project specifications. These needs are expected to require an additional $130,000 for completion for a not-to-exceed task order value of $419,000. Funding Source: Funding for the additional program management services for the MCC rehabilitation project would primarily be from proceeds from the sale of the Clement Landport, supplemented with prior year Section 5307 funds. The Committee recommends the Board provide the Chief Executive Officer the authority to increase the task order for the continued support of the MCC rehabilitation project to the not-to-exceed limit of $419,000. Funds are available in the previously identified funding sources to cover the additional costs of this task order. There was no discussion, and the vote of approval was unanimous. V. NEW INITIATIVES AND COMMUNITY ENGAGEMENT COMMITTEE REPORT: Committee Chair Janet Miller reported on the following: a. Advertising Policy (A ): Chair Miller noted that there were several discussions around philosophic direction of advertising on the buses and what they feel will be best for the brand and for the organization while balancing out 2

4 revenue considerations. The staff put together an updated policy for the board to adopt. In the process, we have created a purpose statement for our advertising policy. The major difference was line item #4. The Metro Council had expressed a real interest in the authority being more user friendly for public service advertisement and for non-profits that have a real need in the community. We added a clause to make the authority more open and embracing to those opportunities. No one had any issues and we ve been advised that this is in good legal order. The Committee recommends the Board approve the use of this amended policy to check the assumptions built into revising the advertising policy and incorporating its intent into the pending contract renewal with our third party advertising sales agent. There was no discussion, and the vote of approval was unanimous. b. Intent with Respect to Secondary Downtown Transit Hub (A ): The nmotion Strategic Plan previously adopted by the Nashville Metropolitan Transit Authority (Nashville MTA) Board memorialized the need for a secondary downtown transit hub in addition to Music City Central (MCC) as essential to Nashville MTA s future growth, with or without High Capacity Transit (HCT). This plan went as far as to give, as a conceptual idea, an approximate location of this second hub in the downtown 4th Avenue/Lafayette area. The need for a secondary hub to support the bus system is based on growing service and patronage to a point where the current MCC facility will be inadequately sized for either the volume of transit buses or transit customers using a downtown transit center; and growth in development in the Downtown core south of Broadway, making the location of the current center increasingly problematic to attract ridership due to a lack of proximity of service. On July 12, 2018, the Convention Center Authority of the Metropolitan Government of Nashville & Davidson County (CCA) approved the acquisition of land located on 719 4th Avenue South. When approving the purchase of 710 4th Avenue South, the CCA discussed its short-term needs for the property, but also noted that Nashville MTA had expressed interest in building a second transit hub in this location to complement MCC. In such time as funding allows, Nashville MTA would like to examine acquisition of the property from CCA, for such acquisition is consistent with discussions that have occurred among Nashville MTA, CCA, the Metropolitan Government and other partners. At this time, because there are no funds available for this purchase, Nashville MTA is not specifically committing any funds for the acquisition of this land. Chair Miller noted that this appears to be a good time for this type of partnership because real estate is not getting any cheaper and this will ensure a long-term transit plan. CCA s attorneys and our attorneys have come together and looked at this. It has no budget implications on the Nashville MTA today. 3

5 The Committee recommended to the Board that Nashville MTA, in conjunction with its nmotion Strategic Plan, continue to review this area as a potential site for overall transit purposes, including a second transit hub, with no financial commitments at this time, and to publicly communicate to the CCA our continued interest in pursuing this project. The CCA will take title of this property for their purposes, and then down the road, more discussions will take place and the Committee will come back to present this before the Board. There was no discussion, and the vote of approval was unanimous. VI. CHAIR S REPORT: Chair Williams expressed appreciation to the staff for the constant, continuous improvement in making WeGo Public Transit a great place. She further noted her appreciation for the information about the route changes, the advertising, the updated policy, the constant conversations about how they look to the future and how they continue to make WeGo better every day. Continuing, Chair Williams noted that last month Amalgamated Transit Union (ATU) President, Patrick Green discussed his concerns about operator assault to the board during the public comment period. Chief Executive Officer Steve Bland had asked the staff to assemble to address presented concerns. As a result, Mr. Bland has created and will share a summation in his report. The Board has requested that Mr. Bland continue to keep them apprised of issues and complaints that were being received so that they can make certain that safety was paramount to our drivers and passengers, and that they are steadfast in their approach to safety. In closing, Chair Williams thanked the Lentz Center for the use of their space to host thier board meetings. VII. CEO S REPORT: CEO Bland reported the following to the Board: With respect to the Murfreesboro Road Project, the project is about one-third complete overall, and we were on schedule for completion in mid-2019 and tracking well for budget. Contractors are working on both pedestrian improvements and upgraded signal technology at this time. We are running into coordination issues with the Airport and Nashville Electric Service that we need to work through quickly to keep the project on schedule. We continue to slowly advance three specific neighborhood transit center projects. Work continues with the school district on the site at Hillsboro High School in Green Hills; we have reviewed site concepts with Tennessee State University for a location on their campus and are awaiting their feedback after they review with their student government and Board of Trustees; and we are also working to advance a site on Clarksville Pike. All three sites were identified in the nmotion Strategic service plan, and sit at the intersections of several major bus routes. He reminded the Board we are hosting the American Public Transportation Association Conference September at the Omni Downtown. He will distribute a program agenda as soon as it is out, and the Board is welcome to attend sessions they find interesting. 4

6 Work on the MCC renovations continue on schedule, with major work occurring on the Level 1 terminal and operations moved on street. Work on Level 1 will be complete before your next meeting, and we will transition to Level 2 the week after school starts. We have about 13 of our 31 new buses on the street now with the rest scheduled in service between now and the end of August. We will begin receiving 19 new AccessRide vans in the next month. Collective Bargaining negotiations between ATU Local 1235 and the Davidson Transit Organization have commenced. RTA Items: o Progress continues on construction of the Hamilton Springs Train Station. Soft opening is scheduled for August with a ribbon cutting ceremony on September 6. o Work continues on the South Corridor Study, examining transit options in the Maury/Williamson/Davidson County corridor. o We continue to work with Mt. Juliet on a parking expansion project at Mt. Juliet Station. o The RTA received renewals of its CMAQ funding to allow continuation of most commuter bus services over the next three years. o MillerCoors elected not to renew its sponsorship of the Titans Game-Day Express, so it is likely that this service will not be operated for the upcoming season. VIII. OTHER BUSINESS: There was no other business to come before the Board. IX. ADJOURNMENT: The meeting was adjourned at 3:12 p.m. 5

7 NASHVILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE BOARD ACTION ITEM Item Number: A Meeting Date: 08/23/18 Item Title: ELECTRIC BUSES & RELATED SUB-EQUIPMENT, SUPPLY AND MATERIALS BACKGROUND With the extension of the Music City Circuit to Tennessee State University last year, the fleet of fully electric buses necessary to operate this service (including spares) increased by two (2). Earlier this year, the Nashville Metropolitan Transit Authority (Nashville MTA) was successful in securing Federal discretionary funding through the Federal Transit Administration s Low or No Emission Bus Discretionary Grant Program (Lo-No). Under existing contracts, we have the ability to acquire these vehicles from Proterra our current supplier. The only meaningful difference between the new vehicles and those currently in service is that the new buses will be 35 in length, in lieu of the 30 buses we currently own. Proterra no longer produces a 30 bus. If approved, these two electric buses will be added to the current fleet used to operate the existing Music City Circuit serving Downtown, the Gulch, and North Nashville. Upon authorization, staff will proceed with an immediate bus order for an anticipated delivery in the first quarter of COMMITTEE RECOMMENDATION The Operations & Finance Committee recommends the Board provide the Chief Executive Officer the authority to approve the purchase of two 35-foot Battery Electric buses from Proterra, Inc. The total sum of this purchase is $1,851,624, including a contingency amount of $36,306. The price includes ancillary equipment including digital signage, video surveillance, routers, radio communications and antennas, training, diagnostic tools, and spare parts. Funding sources to support this purchase will be comprised of a Lo-No Emission Bus Discretionary Grant and FY2018 Metro Capital funds. Approved: Secretary August 23, 2018 Date 6

8 NASHVILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE BOARD ACTION ITEM Item Number: A Meeting Date: 08/23/18 Item Title: LEGAL SERVICES CONTRACTS BACKGROUND The Nashville Metropolitan Transit Authority (Nashville MTA) Board of Directors through its Chief Executive Officer entered into a contract with Dodson Parker Behm & Capparella (Dodson Parker) for general counsel and Board secretary services on September 1, The contract with Dodson Parker expires on August 31, As a result, a Request for Proposals for legal counsel and Board secretary services was recently issued. The following firms submitted responsive proposals: Bradley Arant Boult Cummings LLP (Bradley), Dodson Parker, Klein Bussell PLLC, and Thompson Coburn LLP. CURRENT STATUS Following review, the evaluation team recommends awarding contracts to both Dodson Parker and Bradley for legal counsel services. The evaluation team further recommends awarding a contract to Dodson Parker Behm for Nashville MTA Board secretary services. As Nashville MTA Board Secretary, Dodson Parker will have the following responsibilities: Attend monthly meetings of the Board of Directors; Provide legal advice on the conduct of the meetings, including the interpretation of applicable Open Meetings laws and other issues that could affect the conduct of the meeting; and, Attend monthly committee meetings as needed. As general counsel for the Nashville MTA, Dodson Parker will have various responsibilities including but not limited to the following: Review, draft, and negotiate contracts, leases and other legal documents; Advise on government grant and contract issues; Advise on corporate and tax-exempt organization legal issues; Advise on trademark and copyright issues; Advise on responses to subpoenas, court orders, and requests for information from third parties; Attend Board of Directors and committee meetings as necessary; Conduct litigation as necessary; and, Other legal services as needed. The Nashville MTA expects to utilize Bradley primarily for legal needs including but not limited to: Advising on laws and regulations that pertain to real property, including but not limited to commercial and residential property development projects, real estate financing and leasing, 7

9 Real Estate Investment Trusts, land sales, title issues and searches, escrow arrangements, property management, rights of way, eminent domain, easements, and lease disputes; Negotiating and drafting contracts regarding real estate transactions; and, Other legal services as needed. It is further expected that the law firms will work cooperatively as needed and requested. COMMITTEE RECOMMENDATION The Operations & Finance Committee recommends the Board award five-year contracts to both Dodson Parker and Bradley for legal counsel services. We further recommend the Board award a five-year contract to Dodson Parker for Nashville MTA Board secretary services. Funding for these services will be incorporated into annual operating budgets and capital budgets as required. Approved: Secretary August 23, 2018 Date 8

10 NASHVILLE METROPOLTAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE BOARD ACTION ITEM Item Number: A Meeting Date: 08/23/18 Item Title: NASHVILLE MTA FY2019 CAPITAL BUDGET BACKGROUND The Nashville Metropolitan Transit Authority (Nashville MTA) needs to develop an FY2019 Capital Budget and a Multi-Year Capital Plan in light of the Middle Tennessee connected Regional Transportation Plan and the nmotion Transit Strategy. Nashville MTA also recognizes that the agency has significant capital needs to ensure that safety and compliance requirements are met, assets are managed in a State of Good Repair, and that meaningful customer service and amenity enhancements occur as possible. Projected capital funding levels are significantly less than levels required both to maintain the existing transit system in a state of good repair and to fully implement system-wide improvements and highcapacity transit expansion as defined within the nmotion Strategic Plan. However, the system must be maintained, and the agency must be positioned to sustain current transit needs as well as to grow with regional transportation needs. Chief Development Officer Julie Timm will present a summary of projected capital funding sources and program needs for an in-depth discussion during the New Initiatives and Community Engagement committee meeting. The draft capital plan is attached. The recommended FY2019 Nashville MTA Capital Budget categorizes projects into seven key areas: 1. Safety/Regulatory Projects 2. Projects Committed from Prior Years 3. Transfers to Operations Budget for Preventive Maintenance 4. State of Good Repair 5. Business Improvements 6. Service Improvements consistent with nmotion Strategy 7. System Expansion consistent with nmotion Strategy COMMITTEE RECOMMENDATION The New Initiatives & Community Engagement Committee recommends the Board adopt the policylevel FY2019 Capital Plan with direction to staff to develop a spend plan and funding strategy to implement the plan using available constrained funding sources. Approved: Secretary 9 August 23, 2018 Date

11 FY 19 MTA Proposed Capital Plan August 23, 2018 The Board of Directors of the Nashville Metropolitan Transit Authority (MTA) recognizes the need to develop a broad funding policy for the annual Capital Budget 1) to maintain assets in a state of good repair; 2) to provide improvements to existing service for current riders; and 3) to reflect and advance the initiatives adopted under the nmotion Strategy for Middle Tennessee to expand the use of mass transit in Davidson County. This capital plan generally identifies sources and amounts of projected capital funding available to MTA as well as a framework for categorizing and prioritizing projects for funding decisions. It goes on to provide descriptions of proposed capital projects and to project available resources for those projects. The capital plan provides projected projects for a 2-year horizon FY2019 and FY2020. Projects listed for FY2019 and prior years generally (1) have been thoroughly scoped, and (2) have identified funding sources associated with them. Once approved in the Capital Plan, MTA Board Members can next expect to see them reported out in a project delivery phase, such as design or procurement. Projects listed for FY2020 are more conceptual in nature, and most will likely require more detailed scoping and the identification of specific funding sources. They are listed to facilitate discussion of MTA priorities among members, and will likely be presented in next year s capital plan. Once adopted into the FY2020 Capital Plan, staff will work with funding partners (Federal Transit Administration, Tennessee Department of Transportation, Nashville Area Metropolitan Planning Organization, Metro Nashville) to identify the best matches for outside discretionary funding. Funds described in later sections of this document that might be applied include Congestion Mitigation and Air Quality (CMAQ) funds, Federal Surface Transportation Program (STBG) funds, State Improve Act funds, and funding from the Capital Spending Plan of the Metropolitan Government, as well as several smaller sources. This plan is broadly broken down into the following sections: A MTA Capital Funding Sources and Amounts Describes the typical funding sources for MTA capital projects. B Capital Funding Strategy Broadly describes a ranking process that management uses in advancing capital projects for recommendation to the Board for inclusion. This process is consistent with Federal Transit Administration Asset Management Requirements. C Capital Funding Look Ahead A snapshot of where the MTA stands with respect to likely available funds compared to project needs. D Project Plan Budget A listing of proposed projects, scheduled years and budgets. E Project Descriptions A brief description of each project in the project plan budget. F Projected Fund Balances A summary overview of projected available funding after accounting for programmed projects. 10

12 A. MTA Capital Funding Sources and Amounts MTA receives capital funding from Federal, State, and Local sources as identified below. 1. Federal 5307 Urbanized Area Formula Grant The 5307 federal formula funding is provided to the Region based on reported and audited ridership data. Through annual agreements with regional partners at the MPO level, funding is split among MTA, RTA (Regional Transportation Authority of Middle Tennessee), and Franklin Transit. These funds can also be flexed over to the operational budget to be used for preventative maintenance to some extent, as allowed by FTA regulation. These are typically 80% funds, meaning that 80% of the funding shown is federal money while 10% of the money comes from the state and 10% comes from local sources. At this time, MTA can reasonably predict that annually it will receive approximately $20M total for Capital needs in 5307 funds including state/local match annually. MTA typically transfers approximately $12M to the operations budget for Preventative Maintenance and ADA service costs, though the specific amount for this transfer is included as part of the annual operating budget process. With current budget constraints, MTA has proposed increasing this to nearly $14M in FY2019. FTA provides 5307 funding to public transit systems in Urbanized Areas (UZA) for public transportation capital projects, planning, job access and reverse commute projects, as well as operating expenses in certain circumstances. Eligible activities include: planning, engineering, design and evaluation of transit projects and other technical transportation-related studies; capital investments in bus and bus-related activities such as replacement of buses, overhaul of buses, rebuilding of buses, crime prevention and security equipment and construction of maintenance and passenger facilities; and capital investments in new and existing fixed guideway systems including rolling stock, overhaul and rebuilding of vehicles, track, signals, communications, and computer hardware and software. All preventive maintenance and some Americans with Disabilities Act complementary paratransit service costs are considered capital costs. 2. Federal 5339 Bus and Bus Facilities Grant The 5339 federal formula funding is provided to the Region based on reported and audited bus ridership data. Through annual agreements with regional partners, funding can be split among MTA, RTA, and Franklin Transit. As with 5307 funding, these are typically 80% funds, meaning that 80% of the funding shown is federal money while 10% of the money comes from the state and 10% comes from local sources. 11

13 At this time, the region can reasonably predict that annually it will receive approximately $2.0M total for Capital needs in 5339 funds and state/local match annually. As MTA provides the greatest share of bus service in Middle Tennessee, the portion of these funds that would be fairly shared with RTA and Franklin Transit requires significant paperwork for limited revenue to those agencies. By mutual agreement, MTA receives the full allocation of regional 5339 funding. FTA provides 5339 funding to states and transit agencies through a statutory formula for capital projects to replace, rehabilitate and purchase buses, vans, and related equipment, and to construct bus-related facilities, including technological changes or innovations to modify low or no emission vehicles or facilities. 3. Federal Congestion Mitigation and Air Quality (CMAQ) These are federal funds that are allocated by TDOT through a competitive grant process. These funds typically are 80% federal and require a state or local match. MTA can apply to TDOT for capital funding for Bus Replacements, Park and Rides, and other projects that would result in a reduction of vehicle congestion and an associated improvement of local or regional air quality. MTA does not have a current strategy for requesting these funds and cannot reasonably include this as an ongoing and stable funding source. However, MTA does review shovel ready projects in its capital budget to submit CMAQ applications each year as eligible. Current requests focus on bus replacements. 4. Federal Surface Transportation Program (STBG) These are funds that are managed and allocated by the MPO. MTA can apply for these funds for use on capital projects, engineering, planning studies, and similar activities. These funds are also typically are 80% federal and require a state or local match. MTA does not have a current strategy for requesting these funds and cannot reasonably include this as an ongoing and stable funding source. However, the MPO is supporting MTA with $2M of STBG money on FY19 to support a preventive maintenance transfer to the operating budget in the light of the funding gap associated with the $2M of CMAQ money requested and denied to support two MTA Fixed Bus Service Routes. These STBG dollars will flex into the FY funding. 5. State IMPROVE ACT Program These are state funds that are allocated by TDOT through a competitive grant process. These funds require a local match. MTA can apply to TDOT for funding for a broad range of transit capital projects. MTA does not have a current strategy for requesting these funds and cannot reasonably include this as an ongoing and stable funding source. However, MTA does review shovel ready projects in its capital budget to submit IMPROVE ACT applications each year. Current requests focus on bus replacements and matching funds for federal grants for bus replacements. Last year, MTA was successful in receiving an award for IMPROVE acts funding for bus replacements. 12

14 6. State Grant Match MTA relies on state funding to provide matches to federal funds, typically in the amount of 10% of total project cost. 7. Local Capital Funding and Grant Match MTA relies on local funding to provide matches to federal funds. MTA also makes annual requests of 100% capital funding for specific capital needs including finding the annual fleet replacement needs for bus and paratransit vans. Metro may also fund projects that are aligned with the needs of Metro and MTA including projects such as design and construction of Neighborhood Transit Centers. In prior years, Metro has fully funded MTA requests for matching funds and revenue vehicle replacements. Funding is based on local approval of annual budgets. In order for the MTA to obligate funds to projects, funding for the project must be authorized through the Council-adopted Capital Spending Plan (CSP). For FY19, Metro has indicated that they anticipate Council to take this up in the Fall. Prior to consideration in the CSP, projects must be identified in the Council-approved Capital Improvement Budget (CIB). The CIB is a planning document that communicates a wide variety of capital projects and indicates the extent to which these projects are consistent with the City s Comprehensive Plan. Funding of CIB project through the CSP is dependent on the level of capital funding in a particular year relative to planned projects. Metro Council most recently approved the CIB this past June. MTA projects authorized in the CIB include matches to our Federal and State grants, WeGo Access Replacement Buses, Fixed Route Transit Replacement Buses, and Neighborhood Transit Centers projects. MTA also serves as a conduit for RTA capital budget requests. Authorized RTA projects in the CIB include Federal and State grant matches, and improvements at Donelson Station on the Music City Star to support the pending Transit Oriented Development in that neighborhood. Other When projects deemed to be an MTA priority cannot be funded through traditional formula sources, a dialogue is initiated with potential outside funding partners (ie: TDOT, NAMPO, etc.) to identify other potential sources of funds. Other sources include grants from other federal, state, or local entities. MTA continuously reviews opportunities to apply for grants to support capital projects. 13

15 B. MTA Capital Funding Strategy The MTA capital funding strategy prioritizes the agencies needs 1) to maintain assets in a state of good repair; 2) to provide improvements to existing service for current riders; and 3) to reflect and advance the initiatives adopted under the nmotion Strategy for Davidson County and Middle Tennessee to expand the usage of mass transit. Projects are categorized in the following order of priority. 1. Safety / Regulatory Projects Completing projects required for safety or by law/regulation is at the top of MTA s priority list. Capital projects for FY19 in this category include mandatory software upgrades to two-way communications devices required in for our maintenance functions to assure continued compliance with FCC regulations 2. Committed Projects Some key agency investments are funded with the commitment that full funding will be obligated using multi-year funding. These committed, underway projects are high priority projects. For FY19, the Fare System Improvement project is a committed multi-year project that requires additional funding to cover project contingencies and system startup expenses. 3. Transfer of Federal Capital Funds to Operational Preventative Maintenance and ADA MTA transfers Federal 5307 capital dollars for operational preventative maintenance and ADA needs. The amount transferred annually is reviewed to balance the needs of system maintenance and system capital projects. This has historically been funded at under $12M in prior years. For FY19, this amount will increase to nearly $14 not including an additional $2M being provided by the MPO to cover a loss of CMAQ funding. 4. State of Good Repair (SGR) Maintaining the existing transit system in a State of Good Repair (SGR) is also one of MTA s highest priorities. Having well maintained, reliable transit infrastructure will help ensure safe, dependable, efficient, and accessible services. Capital SGR projects include Routine Vehicle Repair and Replacement, Infrastructure Rehabilitation, Replacement, and Repair, and routine replacement of Information Technology assets. 5. Business Improvements In order to provide increase staff efficiency and improve business processes, MTA will review and upgrade or implement strategic process improvements to streamline business efforts and increase effective use of existing resources. 14

16 Capital nmotion Business Improvement projects include Training and Safety software systems to enhance accident investigation/prevention activities, MTA Intranet/document sharing platform, technology improvements for Paratransit dispatch, project management, and business intelligence. 6. nmotion Service Improvements In order to provide increasingly meaningful service to Davidson County and Middle Tennessee residents, MTA will improve its existing service making it easier to use, more convenient, more comfortable, and more efficient, and more accessible. nmotion Recommendations for Service Improvements include: Make Service Easier to Use Improve Existing Bus Services Improve Access to Transit Make Service More Comfortable Develop a Network of Regional Transit Centers Capital nmotion Service Improvement projects include Neighborhood Transit Centers, Website Overhaul, New Shelters, Capital Investments Supporting Bus Service Improvements (Advancing the Findings of the Comprehensive Operational Analysis and Mobility on Demand), and early planning and support for emerging nmotion initiatives. 7. nmotion System Expansion and High Capacity Transit Development As Davidson County and Middle Tennessee continue at their high rate of population and job growth, MTA will begin laying the foundation for larger infrastructure and network expansion and improvements. These projects tend to be strategic studies or multi-year, multi-disciplinary exercises that can require inter-agency planning, engineering, construction, and financing. nmotion Recommendations for Service Expansion include: Expand Service to New Areas Build Frequent Transit Network Build High Capacity Network Capital nmotion Service Expansion projects include Fleet Expansion (for new service locations and greater service frequency); Light Rail, Bus Rapid Transit, and Downtown Corridor development; and Facility Expansion to accommodate expanded fleet needs. Considering current fiscal constraints, none of these projects are recommended for funding in FY19. 15

17 C. MTA Capital Funding Look Ahead The chart below illustrates the reasonably predicted sources and amounts of funds available to the MTA for capital projects in FY2019. The balance of prior year funds has decreased dramatically from last year as MTA has invested in key projects for Bus Replacement for aging vehicles and State of Good Repair at WeGo Central and Nestor Facilities. MTA has approximately $60M in project capital needs for FY19 and known federal funding committed in the amount of $24M with another $7M of prior funds. The current Metro Budget has capital line items in the amount of nearly $30M associated with vehicle replacements and design and construction of transit centers. MTA is assuming Metro matching funds against federal funding will be awarded. While Metro has historically fully funded the vehicle replacement project needs, there is no guarantee that this or other capital projects will be funded in whole or in part. Once the Metro Spend plan is approved and adopted in September, MTA will need to review the capital budget and modify our spend plan based on local funding levels. MTA will also actively seek Regional and State funding to support capital needs. Comparing funds available to projects programmed, Metro s Capital Spending plan will need to include $17,753,831 or more to sustain the plan as presented. FY 19 MTA Funding Sources $31,263, % Local Funds, $- Prior Year, $6,610, , $2,000, , $22,652, Local Prior Year 16

18 5 - Business Improvements, $1,770, nmotion Service Improvements, $1,300,000 FY 19 MTA Proposed Project List $49,017, Safety/Regulatory Projects, $100, Committed Projects, $4,200, State of Good Repair, $25,905, PM Transfer, $15,567, Safety/Regulatory Projects 2 - Committed Projects 3 - PM Transfer 4 - State of Good Repair 5 - Business Improvements 6 - nmotion Service Improvements 7 - nmotion Service Expansion 17

19 D. Project Plan Budget CAPITAL PROJECT NEEDS Proposed Funding Sources for 2019 Prior Years Safety/Regulatory Projects $ 100,000 $ 275,000 $ 275,000 1 P25 upgrade of Motorola 800 MHz radio communications 5307 $ 100,000 $ 275,000 $ 275,000 Committed Projects $ 44,703,105 $ 4,200,000 $ - 2 Fare Collection Study/System 5307 $ 12,388,685 $ 4,200,000 $ - 3 Commtted Projects from Prior Budgets Various $ 32,314,420 $ - $ - Preventive Maintenance Transfer $ 12,300,000 $ 15,567,000 $ 14,000,000 4 Annual Preventative Maintenance and ADA Transfer 5307 $ 12,300,000 $ 15,567,000 $ 14,000,000 State of Good Repair $ 55,249,181 $ 25,905,000 $ 24,721,800 Safety/Training 5 Replacement On-Board Video Surveillance on Buses 5307/5339 $ 350,000 $ 350,000 $ 150,000 Revenue Vehicles 6 Bus Replacement - 40 foot Diesel Hybrid Local $ 38,114,000 $ 16,050,000 $ 13,850,000 7 Paratransit Vehicles Purchase for Replacement Local $ 1,786,000 $ 1,915,000 $ 1,931,800 Infrastructure 8 Facilities Rehab Renovation Program 5337/5307 $ 13,576,851 $ 6,170,000 $ 7,650,000 9 Shelter/Stop Improvements/Replacements 5307/5339 $ 100,000 $ 250,000 $ 250, Annual Shop Equipment Needs 5307/5339 $ 150,000 $ 150,000 $ 150, Annual Facility SGR 5307/5339 $ 250,000 $ 250,000 $ 250,000 IT Hardware and Software 12 5 Year Replacement Fund - Network, Servers, Computers, Software 5307 $ 750,000 $ 635,000 $ 350,000 Nonrevenue Vehicles 13 Support vehicles (non-revenue) 5307 $ 172,330 $ 135,000 $ 140,000 18

20 CAPITAL PROJECT NEEDS Proposed Funding Sources for 2019 Prior Years Business Improvements $ 215,000 $ 1,770,000 $ 2,500, Training and Safety System Software 5307 $ 65,000 $ 120,000 $ - 15 SharePoint - Intranet 5307 $ 150,000 $ 350,000 $ - 16 Paratransit Dispatch/scheduling software upgrade 5307 $ - $ 300,000 $ 2,500, Business Intelligence Software Study 5307 $ - $ 250,000 $ - 18 Project Management Software 5307 $ - $ 750,000 $ - nmotion Service Improvements $ 3,904,625 $ 1,300,000 $ 800,000 Neighborhood Transfer Centers 19 TSU Transit Center Local $ 1,800,000 $ - $ - 20 Neighborhood Centers (Hillsboro) Local $ 700,000 $ - $ - Communication 21 Website Re-Design 5307 $ - $ 300,000 $ - Shelters/Intersections 22 Shelter Projects "new" 5307 $ 504,625 $ 350,000 $ 350,000 Service Improvements 23 Mobility on Demand Software and Systems Pilot 5307 $ 750,000 $ 500,000 $ 300,000 Plan/Design 24 COA Implementation Support 5307 $ 150,000 $ 150,000 $ 150,000 nmotion Service Enhancements $ - $ - $ - Total Project Budget Requirements $ 116,471,911 $ 49,017,000 $ 42,296,800 19

21 E. Project Descriptions The following are brief descriptions of each project contained in the Project Plan Budget. 1. P25 upgrade of Motorola 800 MHz radio communications Replace existing Maintenance twoway radio communications equipment and associated software with 800 MHz system to comply with current regulations of the Federal Communications System. 2. Fare Collection Study/System - Upgrade/replacement of existing fare collection system to include account-based transaction capabilities, open-architecture/apis for 3rd party integration, mobile and smartcard-based ticketing, etc. Goal is to develop a simple and seamless fare payment system for the MTA and RTA (joint procurement), as well as other public and private transportation providers that wish to partner on integration. This is expected to be the final capital allocation required for the completion of this project and to cover project contingencies and start up costs. 3. Committed Projects from Prior Budgets Projects under completion or with dedicated funding from prior budget cycles that cannot be transferred to other projects. These include projects previously adopted by the Board, such as WeGo Central rehabilitation, Nestor Operating Facility renovations, and ongoing procurements of bus and van replacement vehicles. 4. Annual Preventative Maintenance and ADA Transfer - Annual transfer of capital funds to operational budget for PM and ADA expenses. This is the maximum amount allowable as currently calculated by Finance. 5. Replacement On-Board Video Surveillance on Buses - Managed Services for On-board bus and van Video Surveillance Systems. This line item includes all expenses for a third-party contracted vendor to sustain the system in a state of good repair, including repair components and replacement units. 6. Bus Replacement - 40 foot Diesel Hybrid - Annual bus replacement to bring fleet into State of Good Repair according to the fleet management plan using a normal replacement cycle of twelve (12) years. This will allow for the purchase of up to 20 buses. 7. Paratransit Vehicles Purchase for Replacement - Annual van replacement to bring fleet into State of Good Repair according to the fleet management plan. This will allow for the purchase of 19 vans using a normal replacement cycle of five (5) years. 8. Facilities Rehab Renovation Program - MCC - This funding allows for the ongoing renovation of MCC including Digital Wayfinding and pavilions for outdoor bus bays. Nestor - Continues ongoing engineering and renovation of the Nestor property including the renovation of the outdoor operations lot, Demolition of bus wash, Demolition of old underground storage tanks. Additional renovation/repairs for the building will be required in 20

22 the next two fiscal years including building grout repairs. and engineering for operational improvements to maintenance areas. Myatt - Allows for engineering and costing of exterior building insulation and planning for buildout of basement area to develop an emergency conditions operations center. 9. Shelter/Stop Improvements/Replacements - Annual budget for ongoing repair and replacement of old shelters and bringing shelters into ADA compliance. 10. Annual Shop Equipment Needs - Annual budget for "large ticket" shop equipment needed to maintain vehicles Annual Facility State of Good Repair Annual budget for facility maintenance (ex, HVAC replacements) Year Replacement Fund - Network, Servers, Computers, Software, Etc. - Annual IT Budget for maintenance and replacement of current IT needs. This year includes an increase over the average annual need to account for the purchase of new servers. 13. Support vehicles (non-revenue) Annual non-revenue car/truck replacement to bring fleet into State of Good Repair according to the fleet management plan. This will allow for the purchase of between 5 and 7 vehicles depending on type purchased. 14. Training and Safety System Software - A wireless attachable camera system that can be attached to a bus to evaluate the safety driving skills of the driver. Also, includes a software system that will be used to track and maintain accident and incident files. This system was approved in the capital budget FY18 for 65,000. With the growing demand to use this camera system in multi-functions at one time such as new hire training, yearly refresher training and retraining due to accidents and incidents that we seek additional funding to procure additional camera systems. 15. SharePoint - Intranet - For DTO intranet for sharing work place documents and for MTA for SharePoint project administration 16. Paratransit Dispatch/scheduling software upgrade - The existing paratransit scheduling software (Trapeze PASS) has been used by MTA for well over a decade. This project will consist of design/technical support services to conduct a needs assessment and produce a functional specification for a new system in year 1, and funding to acquire this system in out-years. 17. Business Intelligence Software Study - Operational, Financial, Scheduling, Maintenance, and Planning data are collected and stored in multiple databases provided by a variety of vendors. The purpose of a data warehouse is to establish a central repository of information that pulls from these various sources and consolidates everything into one data structure. This data structure can then be used in combination with database queries and Business Intelligence 21

23 software to streamline and automate various reporting functions. In addition, by having the data in one location, it is possible to perform data analyses that cross-reference previously disparate facts to gain additional insights (for example, cross-reference APC data with farebox stats, or vehicle failures with on-time performance). 18. Project Management Software - Project Managers currently track multimillion dollar infrastructure and technology projects through spreadsheet analysis that do require significant time to manage with limited ability to develop functional reports on funding, schedule, expenditures, and similar PM needs. This will allow for the purchase of industry software to streamline management and reporting of critical projects. Study is underway now to identify needs and available software packages TSU Transit Center - Included as part of the Metro Capital Budget to advance a TSU Transit Center. Level of funding required to support construction will be developed during engineering. 20. Neighborhood Centers (Hillsboro) - Included as part of the Metro Capital Budget to advance construction of a transit center at Hillsboro High School. Prior year commitments can advance engineering for this project. Level of funding required to support construction will be developed during engineering. 21. WeGo Website Re-Design - The website is the primary information and communication channel for our customers and stakeholders. In its current form its design is outdated, non-responsive to mobile technology, antiquated content management system, and lacks responsiveness to ADA needs. The website will also need to be integrated into our ongoing fare collection system in order for customers to manage their accounts on line. 22. Shelter Projects "new" - Funding allows for the planning, surveying, engineering, and construction of new ADA compliant shelters. 23. Mobility on Demand Software and Systems Pilot - This project (or potential group of multiple projects) is designed to pilot solutions designed at addressing first/last mile and cross-town connectivity challenges in Nashville, specifically in areas where fixed-route transit service is not an appropriate solution. The project may include multimodal trip planning, integration with 3rd party service providers (taxi, TNCs, etc.), onboard technology on MTA vehicles, smartphone apps, etc. 24. Comprehensive Operational Analysis Outreach and Implementation Support - Supports ongoing support work under existing contract for outreach efforts to support COA and to advance implementation. 22

24 F. Projected Fund Balances The spreadsheet below projects funding available relative to programmed projects for FY 19 and FY 20 with no assumption of receiving any 100% local Metro Capital funds. These projections indicate that the MTA must find additional funding to reasonably expect to fund the projects identified. This chart assumes that Metro Nashville Spend Plan will provide MTA with necessary matches for federal funding sources, but does not include any assumed 100% capital funds to support projects such as Bus Replacements. Prior Year Balance Remaining Total Funding Source (w/state and Local Match) Prior Year Carryover $ - $ 6,610,553 $ (17,753,831) N/A Section Urbanized Area Formula $ 45,729,535 $ 22,652,616 $ 20,652,616 $ 89,034,767 Section Bus and Bus Facilities $ 8,642,921 $ 2,000,000 $ 2,000,000 $ 12,642,921 Congestion Mitigation/Air Quality $ 15,400,000 $ - $ - $ 15,400,000 Surface Transportation Program $ - $ - $ - $ - Improve Act $ - $ - $ - $ - Metro Local $ 44,910,000 $ - $ - $ 44,910,000 Clement Land Port $ 8,400,008 Total $ 123,082,464 $ 31,263,169 $ 4,898,785 $ 161,987,688 Summary Project Amounts Safety/Regulatory $ 100,000 $ 275,000 $ 275,000 $ 650,000 Committed Projects $ 44,703,105 $ 4,200,000 $ - $ 48,903,105 Preventive Maintenance Transfer $ 12,300,000 $ 15,567,000 $ 14,000,000 $ 41,867,000 State of Good Repair $ 55,249,181 $ 25,905,000 $ 24,721,800 $ 105,875,981 Business Improvement $ 215,000 $ 1,770,000 $ 2,500,000 $ 4,485,000 nmotion Service Improvement $ 3,904,625 $ 1,300,000 $ 800,000 $ 6,004,625 nmotion Service Expansion $ - $ - $ - $ - Total Project Cost $ 116,471,911 $ 49,017,000 $ 42,296,800 $ 207,785,711 Closing Balance $ 6,610,553 $ (17,753,831) $ (37,398,015) $ (45,798,023) 23